The House approved a bipartisan plan creating the Research and Development (R&D) Tax Credit Program. Currently, 37 states have a version of an R&D tax credit. Furthermore, Michigan is the only midwestern state without such a program.
Key Points:
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- The tax credits are patterned after federal credits.
- Creates a state-level tax credit to offset the costs of R&D, which supporters believe will encourage businesses of all sizes to create jobs in Michigan.
- Businesses with 250 or more employees could claim up to $2 million per year.
- Businesses with fewer than 250 employees could claim up to $250,000 per year.
- Employers could claim up to $200,000 additionally per year for expenses due to collaboration with a research university.
Next Steps:
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- The bills were sent directly to the Senate Committee of the Whole for consideration.
